EXPECTED RETURNS . Stocks A and B have the following probability distributions of expected future returns (9%) Probability 0.2 0.2 0.3 4 B (219) 0 19 27 45 0.2 16 23 39 0.1 a. Calculate the expected rate of return, ro, for Stock B (ra = 12.30%) Do not round intermediate calculations. Round your answer to two decimal places 12% b. Calculate the standard deviation of expected returns, ca, for Stock A (n = 20.37%.) Do not round intermediate calculations, Round your answer to two decimal places 4 c. Now calculate the coefficient of variation for Stock 6. Round your answer to two decimal places. sense sense d. Is it possible that most investors might regard Stock 8 as being less risky than Stock A? 1. IF Stock B is more highly correlated with the market than A, then it might have the same beta as Stock A, and hence be just as risky in a portfolia 11. 1f Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio III. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be more risky in a portfolio IV. If Stock B is more highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be less risky in a portfolio V. If Stock 8 is more highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense sense sense -Select